Learn Forex Trading > Day 1 Class > Types of Forex Orders

Type #1 - The Trading Platform

The trading platform is basically an all-in-one type of software that can take care of all of your Forex trading needs. This piece of Forex trading system software will give you all of the research and information needed to make smart and knowledgeable decisions on the Forex market. The software helps to take out some of the guess work and questions that could arise otherwise. This does require some knowledge in the field of Forex, however, as it is not perfect for those who are new to the Forex market.

Type #2 - Signal Software

Signal software is software that still requires work, but will help you in the long-run. This software helps you watch for the signals that are important to Forex trading and to make your own decisions about moving your investments. Again, this software is for those who already have a handle on what they are doing in the market.

Type #3 - Charting Applications

Many people expect Forex trading system software to be something for new people, but many types of Forex trading system software are for those who know what is going on. Charting applications help you to understand trends and to receive tips on buying and selling.

FOREX Order Types: The different types of FOREX orders

A trader has at his disposal different types of orders to make FOREX trades. You need to have a clear understanding of each Forex order type to be a successful FOREX trader.

Market Order is an order to buy or sell at the current market price. They can be used to enter or exit a trade.

Market orders should be used with care because in fast-moving markets there may be a difference between the price seen at the time a market order is given and the actual price of the transaction. This is due to slippage the amount the market moves in the few seconds between giving an order and having it executed. Slippage could result in a loss or gain of several pips.

Limit Order is an order to buy or sell at a certain limit. They can be used to buy currency below the market price or sell currency above the market price. When buying, your order is executed when the market falls to your limit order price. When selling, your order is executed when the market rises to your limit order price. There is no slippage with limit orders.

Stop Order is an order to buy above the market or to sell below the market. They are most commonly used as stop-loss orders to limit losses if the market moves contrary to what the trader expected. A stop-loss order will sell the currency if the market falls below the point set by the trader.

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